Wavefront imaging company, Iatia Limited (ASX:IAT) has successfully secured a $5 million equity funding facility with investment bank Fortrend Securities Pty Ltd (Fortrend) to progress product development and marketing initiatives. This is in addition to the already announced $500,000 that has come from one substantial shareholder, a director and management.

The Fortrend facility will provide funds over the next three years, to help the establishment of a bigger presence in the US, accelerate product development and for general corporate purposes. Fortrend has agreed to provide up to $5 million in an equity Standby Subscription Facility to Iatia to be drawn down at the company's discretion. The timing and amounts of any draw down are covered by provisions in the agreement. In the event of a drawdown, shares will be issued at a small discount and include the issue of unlisted options. The company anticipates, over the life of the agreement, shares will be issued at higher prices as the market reflects the progress in Iatia's product. Fortrend and Iatia have agreed that Fortrend may take up to a 5% stake in the company.

As previously announced the company anticipates giving all shareholders the opportunity to invest through a share purchase plan. The company has not sought funds from investors for over two years and has exercised tight cost controls to ensure revenues were well utilised. In the current financial environment Iatia considers it appropriate to secure extra funding and to give shareholders the opportunity to increase their interests at the lower share price. The company will release details of the share purchase plan in late May.

Fortrend CEO Joe Forster said, "We feel Iatia is a very innovative Australian company with world class technology and we are very pleased to be able to help Iatia achieve its corporate objectives by supporting the product development and marketing efforts".